The United States Securities and Exchange Commission (SEC) added the largest US-listed Chinese company on Friday to the list of firms that would face removal because China refused American inspectors to review their auditors’ work.
According to reports, the required publication of the names of the businesses is the start of a three-year countdown to final delisting.
The shares of Alibaba Group Holding Ltd. have fallen to 9.5% after the announcement of the SEC.
Alibaba is only one among a list of more than 270 Chinese companies listed in New York and identified as being at risk of delisting under the Holding Foreign Companies Accountable Act (HFCAA).
US authorities said the rule gives Chinese companies until early 2024 to comply with auditing requirements.
The SEC said Alibaba has until August 19 to submit evidence disputing identification.
Other companies included on the list are Mogu Inc, Boqii Holding Limited, Cheetah Mobile Inc., and Highway Holdings Limited.
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